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Big fat liability

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CONTENTS: Introduction Tussle Preventive Measures Stakeholders Analysis Arguments Managers Actions Best Solution - Role of the consumer - Role of the industry - Role of the Government Conclusion

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INTRODUCTION In 2003, lawsuit was filed against McDonald’s for marketing products that are high in fat, salt, sugar and cholesterol U.S. Surgeon General’s report (2001) findings:  6 out of 10 adults and 13% children and adolescents were overweight or obese  Obesity in US among adults had doubled and among adolescents had tripled since 1980  Around 300,000 premature deaths a year  Direct and indirect costs of being overweight were $117 billion a year

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TUSSLE In 2000, Americans consumed around 2750 calories day, well above healthy amount needed Exact role and contribution of companies in this mayhem was unclear Several lawsuits were filed against food companies In 2005, Cheese-Burger Bill was introduced shielding producers and retailers but did not become law

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PREVENTIVE MEASURES Kraft changed recipes for some products Labeled products which were high in nutrients and low in calories Stopped advertising to children McDonald’s introduced salads with low-fat dressing Pepsico switched to nonhydrogenated cooking oils

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Q1. What are the argument for and against the proposition that the food and restaurant industries should be held liable for the rise of obesity in the U.S.

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STAKEHOLDER ANALYSISSTAKEHOLDER POWER INTERESTFood and Restaurant HIGH – major chunk of the HIGH – many lawsuits areIndustry problem is generated by filed against them and their them revenues are getting affectedConsumers LOW – not much they can HIGH – high no. of do except changing their premature deaths and eating habits and major cause of other fatal consumption diseaseTrail Attorney and Legal HIGH – their decision can HIGH – rising no. ofcounselors influence both consumers lawsuits filed can become and industries a headache for themGovernment HIGH – can make laws and HIGH - maintaining health regulation against the of its people and reducing industry death are major concerns

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ARGUMENTSIn-favor Against High increase of 57.77%  Not addictive like cigarettes per year in spending  Obesity could result by compared to growth in overeating, sedentary population (38.35%) over lifestyle or general 30 years predisposition Increased competition prompted companies to give more for less More processed products developed carrying excessive calories Inappropriate marketing to

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Q2. In your opinion should the Food and restaurant industries be held liable for the rise of obesity or not ?

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WHO IS LIABLE??? Increased spending on fast foods Overweight rate soared from 5% to 16% in children aged 9-16 This age group is most vulnerable to unhealthy side of fast foods No. of restaurants per capita rose significantly Inadequate communication of health related risks by food companies

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Q3 If you were manager for a fast food chain or food company what action would you take with respect to obesity , If any?

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MANAGER’S ACTIONS Serving the right portion is the key Prices and quantities will be strategically set to make consumers select appropriate portion sizes Mentioning calorie levels against each food item in price menu along with healthy amount required by a person Promoting fruits and vegetables Promoting soups and juices more compared to aerated drinks Running campaigns to spread awareness about advantages of proper sleep, controlled diet and regular exercise

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Q4. What do you think is the best solution to the obesity epidemic ? What role can the food and restaurant industries , trail attorney , government policy makers and regulators and individual consumers play in a solution. If any ?

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BEST SOLUTIONROLE OF THE CONSUMER Consumers are most important player because they make individualized choices about food and lifestyle Influencing the consumer with comprehensive nutrition information and healthy food choices Four motivators of consumer decision are: taste, quality, convenience and price Survey shows though consumers want healthy eating and good nutrition, they are more concerned about taste, convenience and store

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BEST SOLUTIONROLE OF THE INDUSTRY Industry should be committed to giving clear, consistent and honest product claims Retailers and restaurants should offer consumers relevant information about the products they purchase Industry should promote nutrition education at all levels, from public schools to medical schools Creating new products meeting individual nutrition needs and reformulating existing products to be healthier

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BEST SOLUTIONROLE OF GOVERNMENT Government can help educate consumers to make healthier choices through food labeling, physical activity endorsement and the support of community-based programs Can provide incentives to industry for production of low- calorie nutritious food Can stimulate media participation in prevention of obesity Can develop and support new food technology

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CONCLUSION To help fight the battle against obesity, the food industry must team up with the government, academia, and the medical community to help inform consumers, strengthen nutrition education, and develop healthier product choices. Giving consumers the best nutrition information and the best nutritional food options may empower them to make individualized lifestyle changes that will help overcome energy imbalance and, in the long term, may help curb struggle with obesity.